Oprah Winfrey bought 10% of Weight Watchers

OHMYGOSSIP — The diet company’s stock, which had been slumping for the last few years, soared after the firm announced on Monday that Winfrey would take a 10% stake.  The billionaire media mogul, who will also receive options to acquire an additional 5% stake, is joining the Weight Watchers board as well.

Oprah Winfrey makes $70M in one day from Weight Watchers deal! Investors sent the stock up 105% to close at $13.92 on Monday.  The company’s stock had lost nearly 73% of its value in 2015, prior to the news of Winfrey’s investment being publicized.

“Weight Watchers has given me the tools to begin to make the lasting shift that I and so many of us who are struggling with weight have longed for,” Winfrey said in a statement. “I believe in the program so much I decided to invest in the company and partner in its evolution.”

Winfrey bought her shares at $6.79 apiece for a total investment of $43.2 million, according to a Securities and Exchange Commission filing.

Analysts expect Winfrey to use the considerable influence of her brand and media presence — including her well-known knack for promoting health-related initiatives — to drive interest in Weight Watchers meetings and products.

The TV host, actor, producer and publisher “will not just bring attention to the stock, but will accelerate sales and profit recoveries” as Weight Watchers benefits from “free publicity and media savvy,” S&P Capital IQ analyst Efraim Levy said in a research note.

In addition to her role as a board member, Winfrey, who has long shown an interest in health issues and dieting programs, will serve as an adviser to the company.